In spite of the lack of a budget resolution, Congress is moving forward with the appropriations process.

The House, having passed a FY 2005 budget resolution back in May, is rapidly moving forward with appropriations bills, based on an overall discretionary spending cap of $821 billion, including both domestic and military. The House has also approved the division [302(b) allocations] between the 13 appropriations bills, defeating an amendment by Appropriations Committee ranking member David Obey (D-WI) to increase spending by $14.2 billion by rolling back tax cuts. Last week, Appropriations considered the Homeland Security and Interior bills, which are expected to reach the House floor this week. Next will be the Defense bill. The Energy and Water subcommittee was also working on appropriations last week, and subcommittees are expected to work on the Agriculture, Commerce-Justice-State, and Legislative Branch bills during this week.

In the Senate, efforts continue to find a compromise that will allow passage of the budget resolution. Republican Senators McCain (AZ), Chafee (RI), Collins (ME), and Snowe (ME) remain firm in their opposition to any resolution that does not include "Pay-Go" rules -- rules requiring offsets for both tax cuts and entitlement spending. A possible deal that is in the works would extend Pay-Go rules for taxes and spending for three years, but would still allow an exemption this year for three expiring tax cuts, at a cost of $27.5 billion. These would include: the $1,000 per child tax credit, the standard deduction for married couples, and the expanded 10 percent tax bracket. It is uncertain whether that deal will be closed. If there were no budget resolution, the Senate spending cap would remain at last year's level of $814 billion. Additionally, there would be no special protection for the three expiring tax cuts, which could lead to filibusters that require 60 votes for passage, and require offsets for the cost.

Senate Appropriations Committee Chair Ted Stevens (R-Alaska) has said he will move forward with appropriations, starting with Homeland Security or the Defense bill, if no budget resolution is passed by June 15. The Senate Appropriations Committee is preparing to divide up the $814 billion discretionary cap. BNA reported June 10 that the preliminary draft allots the same amount to 12 of the appropriations as the House version, cutting the defense appropriation by $7.2 billion.

After resuming work today, the House and Senate will both recess June 25 and return July 6.